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Newmark Knight Frank Completes Sale of Four Single-Tenant Retail Properties in Southern California Totaling $31 Million

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June 19, 2020 — Newmark Knight Frank (“NKF”) completed four separate transactions of single-tenant retail properties located throughout Southern California for a total of $31 million.

NKF’s Vice Chairman Bill Bauman, Executive Managing Director Kyle Miller and Directors Michael Fogel and Matt Schwartz executed the four transactions.

“Single-tenant retail assets with solid credit, an operating history, favorable lease terms and quality real estate fundamentals remain in high demand, amid volatile capital markets due to the COVID-19 pandemic,” said Bauman. “We are seeing 1031-exchange investors very active in the market and pleased with the IRS’ decision to provide relief/extensions on 1031 timelines.”

Miller added, “Essential retail tenants, such as grocers and drugstores, continue to be highly sought after by investors, especially those who have experienced a significant increase in sales as of late.”

The first property, occupied by CVS, is located at 42150 Jackson Street in lndio and sold for $3.9 million in an all-cash transaction at a 5.1% cap rate. The seller was a private Orange County-based investor and developer, and the buyer was a private investor.

The second property, occupied by McDonalds, is located at 1712 Pacific Coast Highway in Lomita and sold for $2.4 million in an all-cash transaction at a 2.77% cap rate. The seller was a private family trust. The buyer, McDonalds, exercised its right of first refusal after the NKF team was able to generate multiple highly competitive offers.

 

The third property, which sold for $9.9 million at a 5.85% cap rate, is located at 14528 Palmdale Road in Victorville and is occupied by Cardenas, one of the leading Hispanic grocers in Southern California. The NKF team advised the seller, a private Orange County-based developer, and Ed Barkett of Atlas Properties represented the buyer, a private, 1031-exchange investor.

The fourth property, located at 14351 Hindry Avenue in Hawthorne, is occupied by Bed, Bath & Beyond and sold for $14 million. The seller was Hawthorne Gateway, LP, a private Los Angeles-based partnership, and the 1031-exchange buyer was a private, family office. The NKF team, along with Michael Grannis of Highland Partners, advised the seller, who has owned the property for nearly 18 years. NKF helped to implement a break-up strategy that included a simultaneous pay-off and recapitalization of the existing loan to free up the Bed Bath & Beyond parcel at close of escrow.

In the last month, the NKF team has launched over $150 million of high-profile, single-tenant transactions, including a Whole Foods in Santa Barbara and an Apple store located at Santa Monica’s Third Street Promenade, further underscoring the steady demand and momentum of single-tenant retail properties, amid recent economic turmoil.

According to NKF Research, private buyers drove acquisitions in recent years, a trend that will persist in 2020. Many of these buyers are high-net-worth individuals in search of yields that exceed the Treasury. COVID-19’s effects on global stock markets, which are highly volatile in the current environment, also enhance the appeal and security of net-leased investments as property owners receive the benefits of an income stream from a tenant and the underlying value of the asset.

The Inland Empire Business Journal (IEBJ) is the official business news publication of Southern California’s Inland Empire region - covering San Bernardino & Riverside Counties.

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Stater Bros. Charities and Reyes Coca-Cola Bottling Give Back to Military Families

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Stater Bros. Charities, the philanthropic arm of Stater Bros. Markets, partnered with Reyes Coca-Cola Bottling again this year for their Give Back program during National Military Appreciation Month. The program ran for the entire month of May, during which Reyes Coca-Cola Bottling committed to donating $0.25 per eligible product purchased to the Bob Hope USO. Reyes Coca-Cola Bottling donated $15,000, and Stater Bros. Charities matched their donation for a total contribution of $30,000.

A check presentation occurred during a K-EARTH 101 radiothon benefiting the Bob Hope USO. The radiothon took place at the Bob Hope USO at LAX (Los Angeles International Airport) on June 29, 2023, where Stater Bros. Charities and Reyes Coca-Cola Bottling presented Bob Hope USO with a $30,000 check.

Bob Hope USO’s mission is to strengthen America’s military service members by keeping them connected to family, home and country, throughout their service to the nation. The Give Back program is a unique opportunity to show gratitude and support to the brave men and women who risk their lives for our freedoms and to care for their families while they are away from home on deployment.

“Stater Bros. Markets has a long history of supporting veterans, service members, and their families,” said Danielle Oehlman, Director, Stater Bros. Charities. “We are so pleased to partner with our friends at Reyes Coca-Cola Bottling and the USO to give back to those who have given so much for us.”

Lorin Stewart, President, USO West Region, said, “We are deeply grateful to Stater Bros. Charities and Reyes Coca-Cola Bottling for being sustaining partners of the USO. The Give Back program embodies the essence of the USO mission by enabling the community at large to come together to support and give thanks to our armed forces and their brave military families in an impactful way.”

Funds will support the Bob Hope USO and USO San Diego Center operations, including programs and services that strengthen the social, mental, physical, and emotional well-being of local military service members, their families, and their communities.

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BDK Logistics Intelligence Fully Leases 114,190 SF Industrial Facility in Corona, CA

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Cushman & Wakefield represents landlord in lease in SoCal’s Inland Empire

Cushman & Wakefield announced that BDK Logistics Intelligence, Inc. has signed a lease for an entire 114,190-square-foot industrial facility at 1161 Olympic Drive in Corona, California. Situated in Southern California’s renowned Inland Empire, the building is owned by Monterey Rancho Mirage, LLC, which was represented by Brett Lockwood and Rick Ellison of Cushman & Wakefield in the transaction.

“We are pleased to welcome BDK to the property as a quality industrial tenant that is expanding its presence in the market, which it also currently occupies multiple warehouse facilities,” said Director Brett Lockwood. “Our client was instrumental in helping this deal transact as there were many variables that needed to be navigated which led to this lease coming together quickly and successfully.”

1161 Olympic Drive is a quality freestanding building situated on ±4.8 acres and features 20 dock high loading doors. The property is conveniently located off Interstate 15 near the confluence of SR 91 and is proximate to the extensive freeway network traversing the entire Greater Los Angeles region and into other major markets in and out of state.

According to Cushman & Wakefield’s latest Q2-2023 quarterly report, the Inland Empire industrial market posted an overall vacancy of 3.4% and has recorded more than 2.7 million square feet of positive net absorption through the first half of 2023.

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Hernandez resigns as County CEO; Snoke will continue filling in pending Board action

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Leonard X. Hernandez resigned from the post of County Chief Executive Officer effective today. County Chief Operating Officer Luther Snoke has been filling in for Hernandez while Hernandez has been on leave and will continue to do so. The Board of Supervisors will act to appoint an interim or permanent CEO shortly.

“The Board of Supervisors appreciates the service Leonard provided to the public and the County organization, especially as we navigated our way through the pandemic and other very difficult challenges,” said Board of Supervisors Chair Dawn Rowe.

Hernandez provided the following statement:

“It has been an extreme privilege to serve as the Chief Executive Officer of San Bernardino County. I am thankful to the Board of Supervisors for their leadership and the hard-working men and women who do amazing work every day. Due to an urgent family health issue that requires my immediate and undivided attention, I have informed the Board of my resignation. Under the strong leadership of the Board of Supervisors and the County’s executive team, the County will continue doing great things for the residents of San Bernardino County.”

“The Board of Supervisors is committed to a seamless transition in staff leadership with no interruption in County services or impact on County residents or employees,” Rowe said. “Luther has performed well filling in for Leonard and I am confident in his ability to continue serving in this role until the Board takes action.”

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